Is Lincoln Educational Services Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Lincoln Educational Services Corp. has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a P/E ratio of 86, a Price to Book Value of 4.86, and an EV to EBIT of 47.39. In comparison, peers such as Reservoir Media, Inc. have a P/E of 39.21 and an EV to EBITDA of 14.18, highlighting the substantial premium at which Lincoln is trading.
Despite the overvaluation, Lincoln Educational Services Corp. has shown impressive stock performance, with a year-to-date return of 35.65% compared to the S&P 500's 12.22%, and a one-year return of 71.41% against the S&P 500's 17.14%. This strong performance may attract investors, but the high valuation ratios suggest caution moving forward.